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December 2017

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Textured Jersey Lanka (TJL) said it has taken yet another step towards longer term growth and customer centric solutions by deciding to acquire Quenby Lanka Prints (Pvt) Ltd.

“In February 2015, TJL initiated the valuation and due diligence study for the potential acquisition and subsequent to discussions, a purchase price of $3.5 million was agreed upon,” a TJL press release informs.

“Reflecting the strength of a strong balance sheet, the entire consideration is due to be paid out in cash to the shareholders of Quenby Lanka in order to acquire the shares of the company,” it adds.

The transaction will be concluded upon the completion of all regulatory approvals and formalities.

Quenby Lanka, an equal joint venture between Brandix Lanka Limited and Trust Family Industries, Inc., is a leading fabric printer in Sri Lanka.

Quenby’s facility is located on 4.4 acres of land in the Seethawaka Industrial Park and is in close proximity to TJL.

“Therefore, in addition to the printing capability enhancement for TJL, the acquisition also offers potential for further capacity optimisation and margin improvement through synergies,” TJL says.

As a strategically located vendor, Quenby Lanka has developed a strong working relationship with TJL, and this link sees a natural culmination through the acquisition.

According to TJL, the relationship would help speed up the business integration process and launch TJL to the next level of solutions and innovation, adding significant long-term value to its shareholders.

TJL had also previously intimated their interest in yet another company, Ocean India (Pvt) Ltd, and notes that these discussions are also ongoing.

TJL’s major shareholders are Pacific Textiles from Hong Kong, and the Brandix Group, with the local public owning 30 per cent of the company.

Textured Jersey offers a range of innovative cutting-edge fabric solutions to some of the most demanding customers in the world and last year, its profits grew by 16 per cent year over year.

TJL’s CEO Sriyan de Silva Wijeyeratne stated that he was excited by the synergy it would bring, and added that it presented a clear indication of the company moving aggressively towards its next phase of growth. (AR)